New York’s estate tax is applied alongside the U.S. estate tax. Minimizing the impact of these taxes is what The Unger Company does for high- and ultra-high-net-worth clients. Call today to learn more.
Photo by Charles Parker
Estate taxes come in more than one size. There is a federal estate tax that is applied on 2023 estates greater than $12.92 million, and then there are a dozen states that apply state-level taxation to estates.
If you live in New York, you are in one of the states that has its own estate tax. The Unger Company Ltd. is a New York company, so we are very familiar with the state government’s approach to estate taxation. And as estate tax strategy experts, we know how to manage what New York and the federal government throw at the high-net-worth classes.
As of 2023, New York State applies an estate tax to any estate valued at more than $6.58 million. However, like all things New York, this comes with complications: The state has created a “cliff” where any estate that exceeds $6.58 million by more than five percent makes the entire estate – from dollar one – taxable. More to the point, if an estate is valued at more than $6.909 million then the entire amount is taxable. As for the $329,000 between the exemption threshold and the cliff, a rate table applies to that amount. It sounds confusing and, you know something, if you don’t do this every day, it is confusing!
New Yorkers have a problem when it comes to applying a state estate tax because real estate in the Empire State is so valuable and that is a big component of many estates. New York City and its surrounding counties of Westchester, Nassau, Suffolk and Rockland are home to some of the nation’s priciest real estate. There are thousands, if not tens of thousands, of properties in Manhattan alone that exceed the $6.58 million estate tax exemption. And if you own a spacious apartment or townhome in Manhattan and have for decades, plus a home in the Hamptons, and have enough saved for a comfortable retirement, you are probably in one of the rings of New York’s estate tax hell.
If you have achieved in life, it is a responsibility for you to create an estate plan that enables wealth transfer to the next generation. The Unger Company are specialists for New Yorkers who need an experienced firm with extensive knowledge to work with a client’s existing team to create an estate tax strategy that is as elegant as it is effective.
We love saying that Uncle Sam won’t send you a thank you note for taxes paid, and every New Yorker knows that you won’t get a thank you note from Albany, either! Minimizing or building a system of counterweights to taxation is an obligation that we take very seriously. Like federal income tax, New York’s estate tax applies on a graduating scale that begins at 3.06 percent and marches steadily upward to 16 percent — meaning that an estate valued at $50 million would have a New York estate tax bill of $8 million. That’s before you get to federal estate taxes, which could hit a poorly planned estate for another 40 percent!
Using insurance and other well-established legal instruments, The Unger Company builds an estate tax defense system that will protect your assets from New York state and the federal government. Founded by Harold Unger in 1974, The Unger Company provides high net worth (HNW) and ultra-high net worth (UHNW) clients with optimal solutions for estate tax problems. Our expertise and experience are there to serve you and your estate planning team. Contact us through our website or call us at 212-755-4777 to learn what we can do for you.
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Harold Unger LinkedIn: https://www.linkedin.com/in/harold-m-unger-9453aa73/
The Unger Company Ltd. LinkedIn: https://www.linkedin.com/company/93617123/
Keywords: #state-level taxation, #New York estate taxes, #wealth transfer, #estate tax strategy, #HNWI, #UHNWI
